Late spring, and lots on the horizon
WITH GARETH KENT
It does appear that the market in the Geelong and Surf Coast region is starting to generate some heat with some terrific properties selling in the past week or so.
The biggest difference in the market is the return of the “giants”, that is big ticket dwellings being offered to market and transacting at big numbers.
In the past week or two we have had three giants sell: Buxton sold 25 Grant Street at auction for $2.105m, a terrific inner suburban modern architectural designed home, Oslo Property sold an apartment on the 18th floor of the Mercer for $3.3m, and McGraths sold 63 The Esplanade, Drumcondra, for $5.25m.
It’s great to see these sales, but when looking through the current advertised stock, there are only two properties within the urban Geelong region that are advertised above $2m, while there are pages and pages of coastal homes, some boasting asking prices in excess of $7m.
Interestingly the days on market numbers for these coastal areas have ballooned out, especially for the higher end stock.
Agents all report that we are seeing a later spring season, with many vendors having waited for the interest rate falls to normalise.
Hence, we have seen a 12 per cent increase in stock since July, and there is currently more stock coming onto the market than there was this time last year.
More listings increase people’s choices and this means there is less urgency. This is translating into longer days on market, and that “fear of missing out” prompt is well gone.
As one agent said to me recently, you only need one buyer!
And from speaking to many agents, that appears to be the sentiment, properties priced well are still selling and the ‘’housing recovery’’’ is entrenched.
However, to push prices you need competition and that lack of competition is why the regional Victorian median house prices growth is currently only 1.0 per cent, against 4.1 per cent in the Melbourne suburban area (year on year).
There is a lot ahead on our changing Horizon, it seems that there is a new development launched almost weekly in the Geelong CBD precinct.
This week it was the Amber Group’s turn, courtesy of McGraths Real Estate, launching the pre-sales campaign for ‘Cunningham Place’.
This is a bohemian development which will provide for a 5,000 square meter conference facility, 650 seat auditorium, a 168 room Hotel and 60 private apartments.
The development will have bars, restaurants and even a supermarket. I wish them luck and good tidings for the campaign ahead.
Here is a snapshot of a number of developments that are either under way or with permits, that will help re-energise our CBD:
- Cunningham Place (as mentioned above),
- 15 York Street Geelong (7 floors, 37 apartments)
- 23-25 Myers Street Geelong (12 floors, 120 apartments, and some commercial)
- Stella Maris Drumcondra (50 apartments, 3 luxury townhouses)
- 1 York Street Geelong (five floors, 129 Apartments)
- 20 Brougham Street Geelong (Hotel, 100 Apartments and commercial spaces)
- 1-3 Hays Place Geelong (15 floors, 63 apartments)
- 5-11 Mercer/ 2-6 Ginn Street Geelong (73 apartments)
This is just from my own research and I may have missed one or two, however, I note that this equates to approximately an additional 572 apartments in the Geelong CBD.
Unfortunately, this still falls vastly short of the need, with population statistics predicting that Geelong CBD must grow by 10,000 people by 2030.
The average household population is 2.4 people, that means that the known developments above only allow for an additional 1,372 people when they are completed.
Based on the same metric, we will need another 3,595 apartments in the CBD over the next six years!
Enjoy the rest of your spring!
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